The Economy Of Iran As Mixed And Transitional Essay

2455 Words Nov 25th, 2014 10 Pages
The economy of Iran is characterized as mixed and transitional, with a large public sector, small scale agriculture and service sectors, and a prominent state presence in manufacturing and financial services. Sixty percent of the economy is centrally planned, meaning that decisions regarding production and investments are devised by the central power, in Iran 's case the Supreme Leader, Ali Khamenei. The GDP for 2013 was 1.244 trillion, down an estimated one and a half percent from 2012. Despite the economical decline, Iran is seventeenth largest in the world for purchasing power parity, and twenty forth by gross domestic product.The economy is dominated by oil and gas production, despite having over forty industries that are directly tied to the Tehran Stock Exchange, one of the best performing exchanges in the world over the past decade. Forty five percent of Iran 's industries are centralized in Tehran, the capital of Iran. Iran holds ten percent of the world 's oil reserves, and fifteen percent of its gas reserves, making Iran an “energy superpower”. Along with gas and oil, other important exports include carpets, pistachios, leather, and caviar. Imports include motor vehicles, machinery, steel, chemicals, pharmaceuticals, and food. A unique feature of Iran 's economy is the presence of a powerful religious foundation known as Bonyad, which accounts for thirty percent of central government spending. Bonyads are charitable trusts that play a significant role in…

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